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HomeMy WebLinkAbout07523ORDINANCE NO. 7523 AN ORDINANCE AMENDING SECTION 2 OF ORDINANCE NO. 7272 APPROPRIATING $25,000 OF THE PROCEEDS FROM THE SALE OF HARP LOTS AS A RESERVE FUND FOR THE HARP AUTHORITY WHEREAS, a pad site on the HARP has been sold, and WHEREAS, these funds are restricted to use in the improvement and maintenance of the HARP facility, and WHEREAS, the HARP Authority desires to have a cash flow reserve in its operating fund to sustain it through peaks and valleys in its cash receipts, NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: (brackets indicate matter being deleted, underscoring indicates matter being added) SECTION 1. Section 2 of Ordinance No. 7272 is hereby amended to read as follows: The HARP Authority shall not budget the use of these funds for any expenditure and prior to December 31, [2006] 2008 shall return the $25,000 to the City for redeposit in the Lot Sales Fund. SECTION 2. This Ordinance shall become effective upon final passage and approval. BY Randy Thurston Councilperson APPROVED: President of City Council ATTESTED BY: CITY CLERK INTRODUCED September 11, 2006 PASSED AND APPROVED September 25, 2006 (�'AO , -# / ) 52 Background Paper for Proposed ORDINANCE AGENDA ITEM # I cl DATE: September 11, 2006 DEPARTMENT: OFFICE OF THE CITY MANAGER DAVE GALLI, CITY MANAGER DOUG FITZGERALD, ASSISTANT CITY MANAGER TITLE AN ORDINANCE AMENDING SECTION 2 OF ORDINANCE NO. 7272 APPROPRIATING $25,000 OF THE PROCEEDS FROM THE SALE OF HARP LOTS AS A RESERVE FUND FOR THE HARP AUTHORITY ISSUE Lot # 1 on the HARP was sold, and per the Intergovernmental Agreement (IGA) creating the HARP Authority, these proceeds must be used for capital improvements or maintenance of the City's HARP facility. The HARP Authority requested (Ordinance No. 7272) that City Council allow it to use $25,000 of these proceeds as a cash flow reserve for its operating fund and to be used for temporary cash flow needs only. The original agreement required the HARP Authority to return the entire amount of $25,000 to the City prior to December 31, 2006, for redeposit into the Lot Sales Fund. Subsequently, the HARP Authority has contacted the City Administration and is requesting to extend this due date of December 31, 2006, for two years until December 31, 2008. HARP would like to keep this $25,000 to maintain a cash balance in covering the expenses associated with the expansion of the HARP (Phase III A -1). RECOMMENDATION Approval of the Ordinance. FINANCIAL IMPACT These funds will still not be available to cam interest in the Lot Sales Fund for another two years. They will remain with the HARP Authority.